REG - Diaceutics PLC - FY 2024 Trading Update - Strong Revenue Growth

DiaceuticsAnnouncement

28/01/2025 07:00

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RNS Number : 8623U  Diaceutics PLC  28 January 2025

Diaceutics FY 2024 Trading Update

 

Revenue grows 39% on a constant currency basis to £32.2 million in FY 2024

 

FY 2024 Adjusted EBITDA* expected to be marginally ahead of analyst consensus
estimates**

 

Very strong commercial momentum delivered in FY 2024 has continued into 2025

 

Order book of £24.9 million and ARR of £16.8 million at 31 December 2024
provides good visibility for continued strong growth in 2025

 

23% growth in number of customer therapeutic brands working with and three new
customer enterprise-wide engagements added in FY 2024

 

Strong balance sheet with cash of £12.7 million

 

Successfully launched PMx solution and secured first commercial contract as a
promotional partner with a leading biotech for the launch of a breakthrough
oncology precision medicine in the US

 

New Pathology Engagement Liaison service (PEL) launched and first major
customer contract win

 

Increased sales presence in US during FY 2024 and opened US HQ in January 2025

 

Remuneration committee Chair change

 

New York, Belfast and London, 28 January 2025 - Diaceutics PLC
(https://www.diaceutics.com/) (AIM: DXRX), a leading technology and solutions
provider to the pharma and biotech industry, today provides a trading update
for the year ended 31 December 2024 (FY 2024) and announces continued strong
commercial performance and growth across its business.

 

Ryan Keeling, Diaceutics' Chief Executive Officer, commented: "I am
extremely pleased to report another strong year of performance and continued
growth across our business. The investments we have made in sales and product
innovation are showing returns ahead of plan and the team have executed
strongly. This continued growth demonstrates the significant value our
customers place on our solutions, reflected by the increasing number of
therapeutic brands we are working with, and enterprise-wide engagements
secured to date. Our strong commercial progress, delivered over the past two
years during our accelerated investment in the business, has provided us with
the solid foundation required to continue our impressive organic growth, and
we expect to return to profitability in 2025."

 

Trading Update to 31 December 2024

The accelerated investment strategy to scale for growth continues on track
with the 2024 year end cash position in line with analyst consensus estimates
and FY 2024 Adjusted EBITDA* expected to be marginally ahead of analyst
consensus estimates**.

 

Revenues grew 36% to £32.2 million in FY 2024 (FY 2023: £23.7 million),
39% growth on a constant currency basis, equating to a 3-year compound annual
growth rate of 32%.

 

The Company continues to improve the sustainability and visibility of its
revenues, with Annual Recurring Revenue (ARR) growing 23% to £16.8 million as
at 31 December 2024 (£13.7 million at 31 December 2023), with recurring
revenues in FY 2024 being approximately 55% of total revenue in the year (FY
2023: 52% of total revenue).

 

The visibility of future earnings growth is good with our ARR growing and an
order book at 31 December 2024 of £24.9 million (£26.5 million at 31
December 2023). Although the total overall order book value has remained
relatively consistent year on year, the value of the order book expected to be
realised within one year has grown 44% to £17.7 million (31 December 2023:
£12.3 million). This provides strong revenue visibility for FY 2025.

 

Diaceutics secured three multi-year enterprise-wide engagements with a total
ARR of £4.3 million in FY 2024, including the Company's first
commercialisation partner engagement (PMx), where Diaceutics is the primary
partner for a customer launching an oncology precision medicine. This brings
the total number of enterprise-wide engagements secured to seven, across 32
therapeutic brands, with a total ARR of £10.6 million as at 31 December 2024
(four enterprises with a total ARR of £6.3 million at 31 December 2023).  An
enterprise-wide engagement is characterised by a customer deploying the DXRX
platform across three or more of the brands in their portfolio, or a
customer engaging Diaceutics as the primary commercialisation partner for
their precision medicine.

 

DXRX platform adoption by pharma and biotech customers continues to drive
business momentum with Diaceutics currently working with 18 of the top 20
global pharma companies across 56 therapeutic brands. Diaceutics worked with a
total of 52 customers and 85 therapeutic brands in FY 2024, an increase of 18%
and 23% respectively (FY 2023: 44 customers and 69 therapeutic brands).

 

Cash at 31 December 2024 was £12.7 million (31 December 2023: £16.7
million), in line with the accelerated investment strategy the Company
announced in January 2023.

 

Outlook

·    Faster than planned commercial success driven by accelerated
investment cycle

·    Global pharma and biotech customers are continuing to accelerate
their shift to precision medicine to improve patient access, capture lost
revenue and increase profitability

·    The precision medicine market opportunity with pharma and biotech is
significant and growing, with 48 new therapeutic brands receiving FDA approval
in 2024, up 71% on 28 in 2023***

·    New enhanced technologies across the platform are delivering
continued operational leverage

·    Future expansion of the market opportunities outside of precision
medicine continue to be explored with £1.2 million of new market revenue
opportunities already realised in FY 2024

·    The success of FY 2024 and the sustained positive momentum in 2025 to
date serve to validate the Group's growth strategy and provide the Board with
confidence that the growth and profitability targets for 2025 are achievable

 

All numbers stated are approximate and subject to audit.

*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation
and exceptional items.

**Analyst consensus estimates for FY 2024 revenue is £30 million and Adjusted
EBITDA is £2.8 million.

*** Source: Precision Medicine Online - Precision Medicine in 2024: Field at a
'Tipping Point' From Niche to Mainstream.

 

Remuneration Committee Chair Change

Graham Paterson, Senior Independent Director, will, effective 1 May 2025,
step down as Chair of the Remuneration Committee (but will remain a member of
the Remuneration Committee) and Cheryl MacDiarmid will become Chair of the
Remuneration Committee at that time. Cheryl MacDiarmid joined the Company
Board as a Non-Executive Director in October 2024 and is a Non-Executive
Director and serves as Remuneration Committee Chair at Allergy Therapeutics
PLC.

 

Notice of Results

The Company expects to report its preliminary results for the full year ended
31 December 2024 in early May 2025.

 

Enquiries:

 Diaceutics PLC  
 Ryan Keeling, Chief Executive Officer             Tel: +44 (0)28 9040 6500

 Nick Roberts, Chief Financial Officer             investorrelations@diaceutics.com (mailto:investorrelations@diaceutics.com)

 Canaccord Genuity Limited (Nomad & Broker)        Tel: +44 (0)20 7523 8000
 Simon Bridges, Andrew Potts, Harry Rees

 

About Diaceutics

At Diaceutics we believe that every patient should get the opportunity to
receive the right test and the right therapy to positively impact their
disease outcome. We provide the world's leading pharma and biotech companies
with an end-to-end commercialisation solution for precision medicines through
data analytics, scientific and advisory services enabled by our platform DXRX
- The Diagnostics Network®.

 

Prior to publication the information communicated in this announcement was
deemed by the Company to constitute inside information for the purposes of
article 7 of the Market Abuse Regulations (EU) No 596/2014 as amended by
regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations No
2019/310 ('MAR'). With the publication of this announcement, this information
is now considered to be in the public domain.  The person responsible for
making this announcement on behalf of the Company is Nick Roberts, Chief
Financial Officer.

 

 

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